Gas prices rise despite lower demand and increased production

ATLANTA - Georgia drivers are paying more at the pump this week as the state’s average price for regular unleaded gasoline rose to $2.94 per gallon, a five-cent increase from last week. 

While prices are slightly down from a month ago and 41 cents cheaper than this time last year, the average cost to fill a 15-gallon tank now stands at $44.10 — nearly $7 less than a year ago.

What they're saying:

"Typically, gas prices drop if demand is low and crude oil is cheaper. Unfortunately, not this time," said Montrae Waiters, spokeswoman for AAA – The Auto Club Group. "Some refineries are switching to summer blend gasoline, which works better in the heat and costs more to make. However, there is still good news. Georgia drivers are paying 18 cents less than the national average of $3.12."

Local perspective:

Across Georgia, Savannah recorded the highest metro average at $2.98, followed by Atlanta at $2.94 and Athens at $2.93. The lowest prices were found in Dalton ($2.77), Albany ($2.76), and the Catoosa-Dade-Walker region ($2.68).

Big picture view:

Nationally, gas prices rose five cents in the past week to $3.12 per gallon, breaking several weeks of relative stability. According to the U.S. Energy Information Administration (EIA), gasoline demand dropped from 9.18 million barrels per day to 8.81 million, while total domestic supply decreased slightly from 241.1 million barrels to 240.6 million. Despite lower demand, production rose to 9.6 million barrels per day.

In the oil market, West Texas Intermediate (WTI) crude settled at $67.16 per barrel last Wednesday, a 26-cent increase. Crude oil inventories climbed by 1.7 million barrels, reaching 437 million — about 5% below the five-year seasonal average.

By the numbers:

For electric vehicle owners, the national average cost at public charging stations held steady at 34 cents per kilowatt hour. AAA recommends using its TripTik Travel planner to find charging prices along a route.